Pinisi Business Administration Review
Volume 8 Nomor 2, September 2026

Farmer-Middleman Agreements and Salt Price Strategies: A Business Law Perspective in Jeneponto Regency

Siti Syarifah Wafiqah Wardah (Universitas Negeri Makassar)
Yusi Irensi Seppa (Universitas Negeri Makassar)



Article Info

Publish Date
30 Sep 2026

Abstract

This study examines the legal relationship between salt farmers and middlemen (tengkulak) in Bangkala District, Jeneponto Regency from a business law perspective, employing a mixed method approach that integrates normative juridical and empirical juridical methods. Normative analysis applies a statute approach to the Indonesian Civil Code (Articles 1320, 1338, 1339, 1347, and 1365), Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, Law No. 7 of 2014 on Trade, Law No. 25 of 1992 on Cooperatives, and Presidential Regulation No. 126 of 2022. Empirical data were collected through in-depth interviews with nine informants comprising three salt farmers, three middlemen, and three consumers. The findings reveal that: (1) salt prices in Bangkala District fluctuated significantly throughout 2025, ranging from IDR 50,000 to IDR 150,000 per 50 kg—a fluctuation range of 200%; (2) oral agreements between farmers and middlemen formally satisfy the validity requirements under Article 1320 of the Civil Code, yet materially contain imbalanced bargaining positions that potentially violate the good faith principle under Article 1338(3); (3) the oligopsonistic market structure characterized by middlemen's dominance in price determination reflects market failure and potentially contains price coordination elements prohibited under Article 11 of Law No. 5 of 1999; (4) legal reform is needed through three simultaneous pillars: formalization of standard written contracts, establishment of legally incorporated salt cooperatives, and reference price-setting by local government. This study recommends strengthening the regulatory framework for people's salt trade at the district level as a concrete form of legal protection for salt farmers in South Sulawesi.

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Journal Info

Abbrev

PBAR

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences Other

Description

Pinisi Business Administration Review published with the process of peer review and open access with ISSN (Print): 2086-6364. published twice a year in March and September in the field of business administration. Pinisi Business Administration Review is a publication media to channel scientific work ...